MPO Test 2 Jo Bandy
McClelland's Learned/Needs theory:
"Acquired" or "Learned" in that we are not born with these needs, rather we learn or acquire them throughout life. -Achievement -Affiliation -Power
Self-Efficacy
"I can do it!" A persons belief about his or her chances of successfully accomplishing a specific tasks Managers are encouraged to nurture self-efficacy in themselves and others because it is related to improved job performance and job satisfaction.
affective attitude
"I feel" consists of feelings or emotions one has about a situation
behavioral attitude
"I intend" The way we intend or expect to act toward someone or something
cognitive attitude
"I think" Reflects our beliefs or ideas about an object or situation
federal minimum wage
$7.25/hour
Pay structure
(the companies perspective) The relative pay of different jobs (job structure) & how much they are paid (pay level)
Turnover
- can be positive if poor performers are leaving and negative if good employees are leaving.
Procedural Justice
- the perceived fairness of the the process and procedures used to make allocation decisions
Ways to reduce counterproductive work behaviors (CWB)
-Hire individuals who are less prone to engage in this behavior (cognitive or personality tests) -Motivate desired behaviors and not CWBs -Respond quickly and appropriately to employees engaging in CWBs
Ways to reduce turnover
-Hire people who "fit" with the organization's culture -Spend time fostering employee engagement -Provide effective on-boarding -Recognize and reward high performers
Advantage of profit sharing
-May encourage employees to think more like owners - Labor costs are automatically reduced during difficult economic times, and wealth is shared during good times
Ways to increase Employee Engagement:
-Measuring -Tracking -Responding to employee surveys
Stock options
-Right to buy company stock at a discounted price (not obligatory) -CEO pay varies with the performance of the stock market
counterproductive work behaviors (CWB)
-types of behavior that harm employees and the organization as a whole (bullying, theft, gossip, backstabbing, drug/alcohol abuse) -has a strong negative relationship with job satisfaction
Bonus
1 time pay out; does not become part of regular salary or compensation; may be received more than once
Cognitive Dissonance is reduced by:
1) Changing attitude, behavior, or both 2) Belittling the importance of the inconsistent behavior 3) Find consonant elements that outweigh dissonant ones
Cons of Merit Pay
1) Focus on merit pay discourages teamwork. 2) Too much emphasis on individual performance 3) Quality of work can be affected 4) Measurement of performance can be perceived as unfair and inaccurate because all information comes from the supervisor
Individual Incentive Plans
1) Profit Sharing 2) Stock Options 3) Employee Stock Ownership Plans (ESOPs)
Weights are generated in 2 ways:
1. A Priori: determined by expert judgment on the compensable factors 2. Empirically: importance of each factor in the existing labor market
What is a job evaluation system composed of?
1. Compensable factors 2. Weighting Scheme
Core Self-Evaluations (CSEs)
1. Generalized self-efficacy 2. Self esteem 3. Locus of control 4. Emotional stability
Increase Organizational Commitment by:
1. Hiring people whose personal values align with the organization 2. Making sure management does not breach psychological contracts 3. Enhancing the level of trust
Behavioral Outcomes of Job Satisfaction
1. Job Performance 2. Organizational Citizenship Behavior (OCB) 3. Counterproductive Work Behavior (CWB) 4. Turnover
3 Pay-Setting Approaches
1. Market Survey Approach 2. Pay Policy Line 3. Pay Grades
4 key workplace attitudes
1. Organizational commitment 2. Employee engagement 3. Perceived organizational support 4. Job satisfaction
Exceptions to Equal Pay Act of 1963
1. Seniority - Employees who have been with company for a long period of time will likely be paid more than newly hired employees doing equal work. 2. Merit - An employee may be paid more based on merit salary increases or merit bonuses. 3.Quantity or Quality of Production
Factors to consider before using pay surveys
1. Which employer should be included in the survey? 2. Which jobs are included in the survey? 3. If multiple surveys are used, how are all rates of pay weighted and combined?
Big Five Personality Dimensions
1. extroversion 2. agreeableness 3. conscientiousness 4. emotional stability 5. openness to experience
5 Models of Job Satisfaction
1. need fulfillment 2. met expectations 3. value attainment 4. equity/fairness 5. dispositional/genetic components
Components of Executive Compensation
1. salary/bonuses 2. stock options 3. stock grants
Ajzen's Theory of Planned Behavior
3 key general motives predict or at least influence intention and behavior 1) Attitude toward the behavior 2) Subjective norm 3) Perceived behavioral control
intrinsic motivation
A desire to perform a behavior for its own sake (internal feelings)
point system
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it
E.L Thorndikes Law of Effect
A response followed by a reward is more likely to recur in the future.
Emotional Intelligence (EI)
Ability to monitor one's own emotions and those of others, to discriminate among them, and to use this information to guide one's thinking and actions
Values
Abstract ideals that guide one's thinking and behavior across all situations
Agency Theory
Alignment of employee compensation with the owners' interests and goals (If I get this, Ill get this amount of money)
intelligence
An individual's capacity for: Constructive thinking, Reasoning and Problem solving -not genetic -can be altered and modified (by learning) -can be damaged by organic factors (drugs, alcohol, poor nutrition) -A steady rise in average intelligence has been observed over the last 70 years (access to information, globalization, we ate healthier- medical science has advanced)
Job Design
Any set of activities that alter jobs to improve the quality of employee's experience and level of productivity
Key jobs
Benchmark jobs that have relatively stable content and are common to many organizations so that market pay survey data can be obtained. (i.e. administrative assistant, dept. manager, graphic designer) can be used in pay survey
Individual Differences (ID)
Broad category used to collectively describe the vast number of attributes that describe a person ex: intelligence, analytical abilities, attitudes
Three Components of Attitudes
CAB 1. Cognitive 2. Affective 3. Behavioral
Broadbanding
Collapses many traditional salary grades into a few wide salary bands -more flexibility in job assignments and assigning merit increases; more manager discretion
Personality
Combination of stable physical, behavioral, and mental characteristics that give individuals their unique identities
Motivation
DIP Refers to the psychological processes "that underlie the direction, intensity, and persistence of behavior or thought"
Agent
Employee (Manager) who is expected to act on behalf of the Principle more adverse to risk
Difference in Reinforcement Theory vs. Expectancy Theory
Expectancy focuses on what is expected rather than what is experienced
4 Primary Feelings related to Employee Engagement
F U I E 1. Focus 2. Urgency 3. Intensity 4. Enthusiasm
Process theories of motivation
Focus on explaining the process by which internal factors and environmental characteristics influence employee motivation
Content Theories of motivation
Focus on identifying factors, such as needs and satisfaction, that energize motivation
how do values affect our behaviors
GSI guide, self-manage, influence others -Guide our actions. -help you to self-manage (emotional intelligence) -You will be more effective at influencing others' attitudes and behaviors.
Pay Grade Approach
Grouping jobs into a smaller number of pay classes, pay ranges, or "pay grades"; Jobs of similar worth or content grouped together for pay administration purposes. -Simplifies setting the pay rates for numerous jobs -Provides flexibility to move employees around -without affecting their compensation
4 Approached to job design
Job Enlargement Job Rotation Job Enrichment Job Characteristics Model
what is used to develop job structure?
Job evaluations
Equal Pay Act of 1963
Legislation that requires employers to pay men and women equal pay for equal work
Multiple Intelligences (MI)
Linguistic Logical-Mathematical Musical Bodily-Kinesthetic Spatial Interpersonal Intrapersonal Naturalist
What is used to develop pay levels?
Market pay survey
job enrichment
Modifying a job such that an employee has the opportunity to experience: Achievement Recognition Stimulating work Responsibility Advancement
Job Rotation
Moving employees from one specialized job to another
Pros of Power
Need for Institutional Power Desire to organize people in the pursuit of organizational goals and to help people obtain the feeling of competence
Cons of Power
Need for Personal Power Desire to control others, and often manipulate people for their gratification
Difference between Exempt employees vs. Non-Exempt Employees
Non-Exempt (Hourly employees) have lesser responsibilities and decision-making power than Exempt employees.
Principle
Owners (shareholders) who seeks to control of another behavior
Expectation to Performance (instrumentality)
Perceived relationship between performance and outcomes Example: Passing MPO is instrumental to obtaining a Management degree
Gainsharing vs Profit Sharing
Profit Sharing is based off total company profitability, while Gainsharing focuses on group or plant performance
Job Enlargement
Putting more variety into a worker's job by combining specialized tasks of comparable difficulty
Pay and Individual Employee Behavior Theories
REA 1. Reinforcement Theory 2. Expectancy Theory 3. Agency Theory
Perceived Organizational Support (POS)
Reflects the extent to which employees believe that the organization values their contributions and genuinely cares about their well-being
Locus of Control
Relatively stable personality characteristic that describes how much personal responsibility someone takes for their behavior and its consequences
Personal Attitudes
Represent our feelings or opinions about people, places, and objects (positive or negative, impact behavior)
Maslow's Hierarchy of Needs Theory
SELSP -Self-Actualization: "be the best you can be" -Esteem: need for reputation, self confidence and strength -Love: desire to be loved and love -Safety: be safe from harm -Physiological: need for food and water to survive
stock grants
Stock given to employees as compensation or part of compensation
Goal-Setting Theory
Successful people have one thing in common: Their lives are goal-oriented To achieve: -People need ability and resources. -People need to be committed to the goal.
FSLA Overtime
The FLSA requires that employees be paid at a rate of one and a half times their hourly rate for each hour of overtime worked beyond 40 hours in a week.
pratical intelligence
The ability to solve everyday problems by utilizing knowledge gained from experience in order to purposefully shape, adapt to, and select environments (SAS)
interpersonal intelligence
The ability to understand, connect with and effectively work with others
cost of production
The costs related to making or acquiring goods and services that directly generates revenue for a firm
Job structure
The established relative worth of various jobs based on internal comparisons
organizational commitment (and outcomes)
The extent to which an individual identifies with an organization and commits to its goals Outcomes: Continued employment (reduced turnover), Greater motivation to pursue organizational goals
job satisfaction
The extent to which an individual likes his or her job
Feedback
The extent to which an individual receives direct and clear information about how effectively he/she is performing the job
Task Significance
The extent to which the job effects the lives of other people within or outside the organization
Autonomy
The extent to which the job enables an individual to experience freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job
Skill Variety
The extent to which the job requires an individual to perform a variety of tasks that require him/her to use different skills and abilities
Task Identity
The extent to which the job requires an individual to perform a whole or completely identifiable piece of work; will be high when someone works on the product or project from beginning to end and sees the tangible result.
Fair Labor Standards Act of 1938 (FLSA)
This act federally established minimum wage and overtime pay.
Merit Pay
Traditional form of pay in which base pay is increased permanently from performance 1) identifies individual differences in performance.
Pay Policy Line Approach
Uses both internal and external comparisons to derive pay rates for both key and nonkey jobs Provides a greater degree of internal consistency in the structure because the pay of all jobs is directly linked to the number of job evaluation points
Reinforcement Theory
a combination of rewards and/or punishments is used to reinforce desired behavior or extinguish unwanted behavior
Edward W. Deming
a critic of merit pay, argued that it is unfair to rate individual performance because the apparent differences between people arise almost entirely from the system they work in, not from the people themselves solution was to eliminate the link between individual performance and pay
extrinsic motivation
a desire to perform a behavior due to promised rewards or threats of punishment (external rewards)
Benchmarking
a process by which an organization compares its own practices against the competition (product market and labor market competitors)
Subjective Norm
a social factor representing the perceived social pressure for or against the behavior
logical-mathematical intelligence
ability to think logically and to solve mathematical problems
Job evaluation
administrative procedure for measuring the relative internal worth of the organization's jobs.
Weighting scheme
after applying scores for each compensable factor, job evaluators often apply a weighting scheme to account for differing importance of compensable factors to the organization
Perceived behavioral control
an individual's beliefs about whether he or she can actually perform the behavior in question
cognitive dissonance
an unpleasant state that arises when a person recognizes the inconsistency of his or her actions, attitudes, or beliefs Example: when people smoke even though they know it's pretty bad for them
Non-key jobs
are unique to organizations and cannot be directly valued or compared through the use of market surveys
Potential Effect on Organizational citizenship behavior (OCB)
as emotional stability increases OCBs decline (focus is on new tasks rather than co-workers; can lead to obsessing over details and tasks and losing sight of the bigger pictures and those you work with)
compensable factors
characteristics of jobs that an organization values and chooses to pay example: : job complexity, working conditions, required education, required experience, and responsibility
merit increase grid
combines an employee's performance rating with employee's position in a pay range to determine size and frequency of his or her pay increases
External equity
compares what employees in other organizations are paid for doing the same general job
Emotions
complex, relatively brief responses to particular information or experiences that change psychological and/or physiological states
Market Survey Approach
emphasizes external comparisons. It bases pay on market surveys that cover as many key jobs as possible.
Job performance and satisfaction
employee satisfaction is a key workplace attitude managers should consider when attempting to increase the employee's performance both variables indirectly influence each other
Results of Perceived Organizational Support (POS)
employees are willing to work hard and commit to the organization -Increased organizational commitment -Job satisfaction -Organizational citizenship behavior -Task performance -Lower turnover
Non-exempt employees (FSLA)
employees covered by the FLSA (Hourly workers)
Psychologist I. Ajzen
explored the reasons our attitudes and behavior can be misaligned. If you want to change a behavior, you should look at your intentions and ways we you might modify them (Getting Fit/Exercising and eating healthy)
Gainsharing
form of compensation based on group or plant performance rather than organizationwide profits; does not become part of the employee's base salary relflets companies problem solving skills and their culture
Internal Equity
how one employee's pay compares to others inside the same organization
Raise
increase to salary/base pay; can be awarded for merit, cost of living, performance
Power
likes to be in charge and in control of people and events, appreciates being recognized
Affiliation
likes to work in teams, avoid conflict, desire for social relationships
Equity/Justice Theory
model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships
Organizational citizenship behavior (OCB)
optional behavior that is not part of an employee's formal job requirements, but which promotes the effective functioning of the organization -voluntary -help work groups and organization's effectively achieve goals
Product market competition
organizations must sell good and services at a quantity and price that will bring a return on investment; must compete on price, quality, service, etc
Rate Ranges
pay rates that range from maximum to minimum for the same job or grade level; allows organizations to acknowledge the differences in employee performance.
Profit Sharing
payouts are based on a measure of organization performance (profits), and payouts do not become a part of base pay.
musical intelligence
potential to appreciate, compose, and perform music
linguistic intelligence
potential to learn and use spoken and written languages
naturalist intelligence
potential to live in harmony with one's environment
spatial intelligence
potential to recognize and use patterns (fighter pilots)
intrapersonal intelligence
potential to understand and regulate oneself
bodily-kinesthetic intelligence
potential to use mind and body to coordinate physical movement
Achievement
prefers working on challenges. desire to excel, overcome obstacles
Distributive Justice
reflects the perceived fairness of the way resources and rewards are distributed or allocated
Emotional Stability
relaxed, secure, unworried
Personal Competence
self awareness and self management
Job Characteristics Model
skill variety, task identity, task significance, autonomy, feedback
social competence
social awareness and relationship management
Conscientiousness -
tendency to be careful, scrupulous, and persevering -has the strongest effect on job performance and job satisfaction -Achievement oriented -Desire status -May be overly detail-oriented
openness to experience
tendency to be original, have broad interests, be open to a wide range of stimuli, be daring and take risks -non comforting -creative -adapt well to change -more likely to benefit from training
Neuroticism
tendency to experience negative emotions and moods, feel distressed, and be critical of oneself and others -More likely to experience burnout -Not best performers -less likely to engage in citizenship behaviors
Extraversion
tendency to experience positive emotions and moods and feel good about oneself and the rest of the world. Social, talkative, energetic. -Good at social interaction -Excitement-seeking -is a stronger predictor of job performance than agreeableness
Agreeableness
tendency to get along well with others -Good in groups -High agreeableness - not top managers
pay level
the average pay, including wages, salaries, and bonuses, of jobs in an organization example: on average, marketing managers at Walmart make $80k
Attitude toward the behavior
the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question
Organizational Justice and the 3 components
the extent to which people perceive that they are treated fairly at work 1) Distributive Justice 2) Interactional Justice 3) Procedural Justice
labor market competition
the number of workers available relative to the number of jobs available. determines the amount an organization must pay to compete against other organizations that hire similar employees (truck drivers or refrigeration techs)
external locus of control
the perception that chance or outside forces beyond your personal control determine your fate -low motivation -smaller salaries
Internal Locus of Control
the perception that you control your own fate -high motivation
Performance to Outcome (valence)
the positive or negative value people place on outcomes Example: a large monetary bonus for my effort is worth it, while a pat on the back or appreciation certificate are not worth the effort.
Interactional Justice
the quality of the interpersonal treatment people receive when procedures are implemented
When developing pay levels, job structure is
the relative pay of jobs (range of pay) example: the job structure of marketing managers at Walmart pays between $65-100K
Expectancy Theory
the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards
Potential Effect on counterproductive work behaviors (CWB)
there is a tipping point when stress becomes too much and emotional stability does not protect employees from committing CWBs
Exempt Employees (FLSA)
those employees (executive, professional, administrative and outside sales) not covered by the FLSA and not eligible for overtime pay. (Managers)
emotional intelligence
using your skills to manage yourself, manage others, and manage tasks
Employee Engagement
when employees are connected to, satisfied with, and enthusiastic about their jobs "Giving it their all." "Bringing their whole self to work."
disadvantage of profit sharing
workers may perceive their performance has less to do with profit than top management decisions over which they have little control employee dissatisfaction
self-esteem
your general belief about your own self-worth.
